The deal transferring shares owned by the government in the financially-struggling Sea Malta to Italian company Atlantica di Navigazione SpA was concluded last Friday after months of negotiations, often mired in controversy.

The debate is however far from over because the transaction is subject to a due diligence exercise which the new owners, the Grimaldi group, are to conduct, and the finalisation of an agreement with the General Workers’ Union – stipulated in the memorandum of understanding signed earlier this year.

The toughest obstacle for Grimaldi will be to convince the GWU that major changes in work practices have to be introduced. At present Sea Malta employees enjoy working conditions that are, in the words of managing director Emanuele Grimaldi, “peculiar” to say the least. These practices are also a major factor that led to Sea Malta’s extremely poor financial situation, he said.

The Grimaldi Group has already made it clear that it will not accept to run the company under these “expired” circumstances. The new owners want to adopt work practices that are more consonant with today’s needs, and in line with work practices established by the International Transport Federation.

At present, Sea Malta employees work on a 15-day on, 15-day off system, and the Grimaldi Group has insisted with the union that this has to change if the company is to survive the rough waters it is now in.

The General Workers’ Union, a few hours before Friday’s agreement was signed, insisted that the clause in the MOU – that stipulates an agreement must be reached with the union – is retained when the transfer of shares is concluded. This shows that the GWU is prepared to fight – which is has the right to do – to safeguard the workers’ conditions.

What happens next depends on all parties acting in a mature and responsible manner so that what has been described as a “historic” deal will not fall through because of intransigence.

The union has to understand two things. First, that the future of Sea Malta rests entirely in its hands and, second, that after all, the changes are necessary if Sea Malta wants to survive and prosper.

The Malta Independent has always been in favour of Sea Malta’s privatisation. TMID believes it is the only suitable option to save the shipping line. The company has been losing money year in, year out. Its two ships are more or less falling apart and, sooner or later, they need to be replaced. Sea Malta has also lost its competitive edge.

Now that Grimaldi have stepped in, the company will get the cash injection it needs to survive.

Grimaldi have pledged to buy an entire new fleet and to continue operating under the same name. This is already a huge boost for the company. Sea Malta needed new vessels but the company simply could not afford to buy them. Under new ownership, Sea Malta now can have a new fleet that will help it to enhance the strategic link between Malta and continental Europe.

Grimaldi must concentrate their efforts on this link. Malta is an island and therefore relies heavily on sea transport for importation and exportation purposes. Thus, the Grimaldi Group must realise that, while the commercial aspects of its operations are important, the exigencies of an island state cannot be neglected.

Grimaldi will be investing E10 million in a company that, for all intents and purposes, is effectively bankrupt. It decided to do so because it believes that with a new fleet and improved work practices, the company can be turned around and become profitable.

The E1 million the government will receive for its shares in Sea Malta may be considered by some as a pittance but looking at the overall picture, the government has made a good deal.

GWU permitting, that is.